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Watson Pharmaceuticals, Inc. (NASDAQ:WPI), incorporated in 1985, is a specialty pharmaceutical company engaged in the development, manufacture, marketing, sale and distribution of brand and generic pharmaceutical products. Throughout its history, WPI showed many fluctuations in its stock value, going to $21.23 with 8.83 million shares in 2008 to $34.81 per share in just a year.

The new-entrant CytoDyn (CYDY), incorporated in 2003, reached an all-time high of $3.00 in mid 2006, and an all time low of $0.15 in 2008. They are currently working upon an immune-based therapy to HIV / AIDS: Cytolin, claiming it to be the ONLY solution to this epidemic. CytoDyn, independently conducted a test using around ten HIV infected subjects, outcomes were satisfactory. But once the Massachusetts General Hospital – which is conducting a separate biomedical study on the drug – approves it, it is for sure that stock values would soar at $4.82, with a market capitalization that would be at least 6 times that of today (54.6 million exp. versus current 8.47 million, an inflow of around 50 million). It is clearly evident from last few weeks’ data that the stock value raised to $1.50 from $0.75 in less than a month, even before the study initiation.

What are your opinions regarding investment in emerging corporations of the US pharmaceutical industry? Any comments, ideas and stock pick suggestions are welcome.

reference link: http://blog.insidecytolin.com/?p=240

Steven